"For the first time in a decade we are in tune with the electorate on the economy," an excited senior Conservative front bench MP said minutes after the pre-Budget report was unveiled.

He had just seen an angry George Osborne denounce Gordon Brown's "deceit" and Labour's record levels of borrowing.

The Shadow Chancellor's fury delighted Tory backbenchers who shrieked their support. He talked about all Labour governments ending up bankrupt and finished with a joke about Denis Healey carrying on driving rather than returning from the airport to try and defend the pound if he had had to announce the figures Alistair Darling had been forced to reveal.

Mr Osborne issued a rallying call about the next election: "The choice at the next election could not be clearer. A record borrowing binge and a lifetime of taxes rises under Labour. Or fiscal sanity and lower taxes that last under the Conservatives."

Labour MPs see it differently. For them Mr Darling and Gordon Brown set out their pitch for the next election.

It was a fairly straightforward one. The Chancellor was saying that voters would choose at the next election between Labour and its "fairer" tax rises for the highest earners, or back the "uncaring" Conservatives who have sat by during the recession.

Those hoping to hear Mr Osborne denounce the new higher tax rate for those earning more than £150,000 were disappointed. He contented himself with pointing out it would raise little a fraction of the amount needed to recoup the tax "stimulus" giveaways.

He and David Cameron will now oppose the tax measures. Mr Osborne cannot back them having stated clearly to MPs that measures are likely to make the recession worse.

On the higher tax rate the Tory high command met immediately after the Commons statements yesterday afternoon. Labour's focus groups have been telling them that people are broadly in favour of tax rises for high earners. Similar groups for the Conservatives will have told them a similar thing.

A traditional Tory regime would immediately have opposed the move. For a start these are not "super wealthy". They are not millionaires. Believing they are does Labour's work for them.

Last night David Cameron's office said "clearly we are against it in principle."

However, it then emerged that the Tories will not oppose the move in practice and will not fight the next election pledging to reverse the policy.

A senior shadow front bench MP said: "Reversing this will not a priority."

Mr Cameron and Mr Osborne believe Labour has laid a trap and they are going to refuse to walk into it. At the next election they do not want Labour accusing them of fighting to restore lower taxes for high earners.

A senior Tory added: "Our priority will be the low paid and those struggling."

The Conservatives will instead turn their fire on the National Insurance tax rises announced yesterday as an example of Labour determination to make everyone pay tomorrow for the Government largesse today.